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Transcript of Uiic Annual Report 2014-15
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the most preferred insurer in India, with globalfootprint & recognition.
a trusted brand admired by all stakeholders.
the best-in-class customer service provider
leveraging technology & multiple channels.
the provider of a broad range of innovative
products to meet the needs of all customersegments.
a great place to work with highly motivated
and empowered employees.
recognised for its contributionto thesociety.
We The Company will be
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TRUST AND EXCELLENCE
REACHES A NEW HEIGHT
Insuranceisthesubjectmatterofsolici
tation
hank you customers
www.uiic.co.in
United India steps into its 8 year of dedicated services
h
United India steps into its 78 year of dedicated servicesth
As we step into our 78 year of protecting the nation from unforeseen risks, we owe our
accomplishments to the trust of our customers and the dedication of our employees.Surging ahead, we are committed to broaden the boundaries of Non-life insurance.
th
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Report of the Board of Directors 18
67
Independent Auditors’ Report
Review of Accounts by the Comptroller & Auditor General of India 74
Revenue Accounts 75
Profit and Loss Account
Balance Sheet
Schedules 80
Segmental Report
Cash Flow Statement 118
Significant Accounting Policies 120
Notes Forming Part of the Accounts 126
Accounting Ratios 140
Summary of Financial Statements 145
Management Report 146
Ageing of Claims 148Unclaimed amount of the Policyholders - Age-wise Analysis 154
157
Review of Accounts by the Comptroller & Auditor General of India 161
Segmental Report
68
78
79
88
176
Independent Auditors’ Report 158
Revenue Accounts 162
Profit and Loss Account
Balance Sheet
Schedules
Cash Flow Statement
Significant Accounting Policies
Notes Forming Part of the Accounts
FORM AOC-I 209
165
167
168
188
190
197
STANDALONE FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS
INDEX
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BOARD OF DIRECTORS
MILIND KHARATChairman-cum-Managing Director
ASHA NAIRDirector & General Manager
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KISHORE KUMAR SANSIDirector
ALOK TANDONDirector
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Chairman-cum-Managing Director
Directors
Executives
General Managers
Milind Kharat
Alok Tandon (from 5-6-2014)
Kishore Kumar Sansi (from 13-5-2015)
Priya Kumar (upto 4-6-2014)
T.M. Bhasin (upto 31-03-2015)
A. Thrivikraman Thampi (upto 24-8-2014)
Asha Nair
M. Vasantha Krishna (upto 14-1-2015)
Chairman-cum-Managing Director
Milind Kharat
Asha Nair
A.V. Girija Kumar (from 22-1-2015)
M. Vasantha Krishna (upto 14-1-2015)
R.K. Deka (upto 14-1-2015)
M.V.V. Chalam
A. Hoda
V.E. Kaimal
T.L. Alamelu
Ramma Bhasin (upto 13-6-2014)Ish Kumar
P. Hemamalini (from 30-5-2014)
V.E. Kaimal
Kunnel Prem
S. Sivaraman
R. Shivakumar
V. Sajan
R. Hariharan
P.V.S. Laxmi Prasad
K. Govindarajan
K.B. Vijay Srinivas
N. Pauly Sukumar
V. Srinath
Usha Ramaswamy
B.B. Dash
Chief Financial Officer
Chief Vigilance Officer
Deputy General Managers
DIRECTORS AND EXECUTIVES
V.K. Ramchander
K.K. Panda
CH. Narasimha Rao
M.P. Jairam
Soumya Mukherjee
Ravi Rai
K.L. Kunjilwar
G. Yesudasu
S. Ramadoss
S. Venkataraman
M/s. Brahmayya & Co.
M/s. Maharaj N R Suresh & Co.
M/s. Padmanabhan Ramani & Ramanujam
Milind Kharat, CMD
V.E. Kaimal, CFO
S. Venkataraman, Company Secretary
A.V. Girija Kumar, General Manager
V.K. Ramchander, Deputy General Manager
M.P. Jairam, Deputy General Manager
K. Govindarajan, Deputy General Manager
CH. Narasimha Rao, Deputy General Manager
S. Venkataraman,
Chief Manager and Company Secretary
L. Rangarajan, Chief Manager
Company Secretary
Auditors
Key Managerial Personnel
Chief Grievance Officer
Principal Compliance Officer
(Anti-Money Laundering)
Chief Underwriter
Chief Risk Officer
Chief Compliance Officer
Compliance Officer –
Corporate Governance Guidelines
Chief Public Information Officer
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Duringtheyear,thecompanyreceivedthefollowingprestigiousawards:
“Consistent All Round Performer” Award received by CMD from
DalalStreetInvestmentJournal
IndianInsuranceAward,2014underthefollowingcategories:
a) E - BusinessLeader
b) Bancassurance Leader
c) Best Non-Urban coverage
SKOCH Merit Certificate 2014 – “Order of Merit” for “India’s Best
FinancialInclusionandFinancialDeepeningProjects–2014"
IOD– “Golden PeacockAward” for“Excellenceinmicroinsurance”
“CEO with HR orientation” presentedto CMDand“40Most Talented
HRleaders”forGM(HR)–AsiaPacificHRMCongressAwards,2014
ABP News Brand Excellence (B.E.) Award in “Non-life insurance
(PublicSector)”
Certificate of Appreciation – “Best Practices Award” by Hon’ble
CM of Tamil Nadu – for 2014 – for excellent contribution towards
awardwinningTNCMCHISscheme
Outlook Money Award 2014 – “Best Health Insurer” Award –
RUNNERUP
Dalal Street Investment Journal – 6th DSIJ PSU Awards – “MostConsistentPerformer”GeneralInsuranceoftheyear
RECOGNITION FOR THE COMPANY AWARDS & ACCOLADES
www.uiic.co.in
ANNUAL REPORT 2014 - 2015
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CIN : U93090TN1938GOI000108
NOTICE is hereby given that the SEVENTY-SEVENTH ANNUAL GENERAL MEETING of the Members of theCompany will be held on MONDAY the 29th JUNE 2015 at the Registered Office of the Company at24, WhitesRoad, Chennai- 600014,at 12.30p.m., totransactthe followingbusiness:
To receive andadoptthe Directors' Report andAuditedAccountsfor theyearended31stMarch2015.TodeclaredividendonEquityShares.To authorise the Board of Directors to fix the remuneration of Auditors, to be appointed by the C&AG,fortheyear2015-16.
Place : Chennai
Encl.:ProxyForm
(1)(2)(3)
(By Order of the Board)for United India Insurance Company Limited
Date : 23 June 2015 COMPANY SECRETARY
1. Any member, entitled to attend and vote, is entitled to appoint a proxy to attendand vote instead ofhimselfandsuchaproxyneednotbeamember.
2. The Proxy Form duly stamped and executed, should be deposited at the registered office of the company
notlessthanforty-eighthoursbeforethe time fixedfor thecommencementof themeeting.
S. VENKATARAMAN
Notes:
NOTICE
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CORPORATE MANAGEMENT
MILIND KHARATChairman-cum-Managing Director
ASHA NAIRDirector & General Manager General Manager
M.V.V. CHALAM
General ManagerA. HODA V.E. KAIMAL
General Manager & Financial AdvisorT.L. ALAMELU
General Manager
KUNNEL PREMChief Vigilance Officer
P. HEMAMALINI
General ManagerS. VENKATARAMANCompany Secretary
ISH KUMARGeneral Manager
A.V. GIRIJA KUMARGeneral Manager
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CORPORATEMANAGEMENT
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CORPORATE MANAGEMENT(2014-15)
M. ELANGODy. General Manager
R. SIVAKUMARDy. General Manager
K. GOVINDARAJANDy. General Manager
V. SRINATHDy. General Manager Dy. General Manager
CH. NARASIMHA RAO
Dy. General ManagerS. SIVARAMAN
R. HARIHARANDy. General Manager
N. PAULY SUKUMARDy. General Manager
S. RAMADOSSDy. General Manager
M.P. JAIRAMDy. General Manager
G. YESUDASDy. General Manager
V.K. RAMCHANDERDy. General Manager
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REGIONAL INCHARGES(2014-15)
Northern Zone
Eastern Zone
S.M. CHURA, DGMKolkata RO
M.K. GUPTA, CRMLudhiana RO
S.N. SAXENA, CRMLucknow RO
RAMESH AIYAR, CRMDehradun RO
NEEL GARG, DGMNew Delhi RO-1
K.L. KUNJILWAR, DGM
Jaipur RO
RAVI RAI, CRMChandigarh RO
AJAI KUMAR, CRMPatna RO
RAM NIWAS, DGMNew Delhi RO-2
SANJEEV KUMAR, CRMBhubaneswar RO
WANSILA KHARKONGOR, CRMGuwahati RO
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REGIONALINCHARGES(2014-15)
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REGIONAL INCHARGES(2014-15)
Western Zone
RAJESH KUMAR, CRMNagpur RO
Dr. ANIL RAJMANE, DGMMumbai RO-1
B.B. DASH, DGMBhopal RO
K.K. PANDA, DGMPune RO
A.N. RAI, CRMAhmedabad RO
R.P. MITTAL, CRMVadodara RO
Southern Zone
K.B. VIJAY SRINIVAS, DGMChennai RO
P.V.S. LAXMI PRASAD, DGMHyderabad RO
V. SAJAN, DGMKochi RO
USHA RAMASWAMY , DGMBangalore RO
SOUMYA MUKHERJEE, DGMMumbai RO-2
Dr. PRADIP SARKAR, CRMRaipur RO
ANNUAL REPORT 2014 - 2015
Dr. D. DHANVANTARI, CRMVizag RO
Dr. ABDUL AZEEZ, CRMCoimbatore RO
T.K. HARIDASAN, CRMHubli RO
V. RAGHUNATHAN, CRMMadurai RO
A. PADMANATHAN, CRMPuducherry RO
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LARGE CORPORATE & BROKERS CELL INCHARGES(2014 - 15)
BASUDEV SATAPATHY LCB Mumbai
Dr. K.A. KRISHNALCB Bangalore
A.R.K. REDDY LCB Hyderabad
Dr. P.M. KULKARNILCB Pune
JAIDEEP SINHALCB Kolkata
RAJENDRA B. JOSHILCB Ahmedabad
S.P. NATHANLCB Chennai
ASHIM KUMAR MUKHERJEELCB Delhi
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LARGECORPORATE&BROKE
RSCELLINCHARGES(2014-15)
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Ludhiana
Chandigarh
Dehradun
New Delhi RO INew Delhi RO-I
Jaipur Lucknow
PatnaGuwahatiGuwahati
KolkataKolkata
Bhopal
Nagpur Raipur
VadodaraVadodara
AhmedabadAhmedabad
Mumbai RO-IMumbai RO-II
Pune
Chennai
Puducherry
Hubli
Bengaluru
Coimbatore
MaduraiErnakulam
List of Regional Offices and Large Corporate & Brokers Cells (LCB)
REGIONAL OFFICES
LARGE CORPORATE & BROKERS CELLS (LCB)
New Delhi RO IINew Delhi RO-II
BhubaneswarBhubaneswar
VishakhapatnamHyderabad
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LISTOFREGIONALOFFICESAND
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The General Insurance Industry posted a growth last year at10.80%. Inline with the same, the company grew at 10.12% totouch 10,692 Crores, with an accretion of 983 Crores. Theclaims ratio was impacted due to the unprecedented
catastrophic floods in J&K state and Hudhud cyclone losses,which affected coastal districts of Andhra Pradesh, the like ofwhich was not seen in the last 100 years. The company wasreported over 5000 claims from both the catastrophesamounting to 1,200 Crores. Despite this, the company,through efficient claims management, was able to post aincreased claims ratio of 84.42%, which is 1.86% more than theearlier year. The management expenses was 2,649 Crores,
which included AS 15 provisionof 549 Crores and wage revisionprovisionof 215Crores.The combined ratio hasconsequentlymovedupto120%.
Last year was a watershedone for the General Insurance Industry in India. InsuranceLaws (Amendment) Act, 2015was enacted and the FDI cap for companies in the sector raised to 49%. While the former devolves more powersto the Regulator for better development of the Industry, the latter will bring in more capital into the sector, withmore companies set to enter the market and thereby intensifying the already acute competition. While this is achallenge, there are opportunities galore for the growth of the sector which has an abysmally low penetration at0.80% and a density of USD11. TheGovernment at thecenter is decisively pushing ahead with thereformprocessfor rapidinfrastructuredevelopment and further liberalization through game changing initiatives like ‘Make In India’,PMJDY, etc. All these, will push the Indian economy to a higher growth trajectory with its spin-off benefits on thegrowthoftheGeneralInsuranceIndustryinIndia.Thecompanyiswellpositionedtoleveragetheopportunities.
During the year, the company will focus on retail, MSME and rural sectors. Motor and Health will be the growthengines for the company. The company will also focus on customer service parameters and look at various waysandmeanstobetterthecustomerexperiencewiththecompany.
UnitedIndiais a greatcompanywitha wonderful legacyof 77yearsvintage.Ourbusiness ismorestreamlined,more
focused and in far better shape to compete strongly in an increasingly competitive landscape. We have the talent,strategy and determination to take our company forward to cross the premium target of 12,345 Crores for thecurrentyear.
In closing, I wish to place on record, my sincere appreciation and gratitude to the Board of Directors and the IRDAIfor their guidance and support extended to the company. I also wish to place on record my gratitude to ourcustomers, employees, business intermediaries and vendors for their continued support. All these facilitated ourcompany to deliver credible operational performance, underchallengingcircumstances, as also deliver excellenceincustomerservice.Ilookforwardtofuturesuccesswithrealoptimism.
R R
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From the CMD’s Desk...
MILIND KHARAT
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1.
1.1 Brief on Independent Auditors' Report
1.2 Highlights of Financial Performance of the Company1.2.1 Share Capital
1.2.2 Reserves
1.2.3 Dividend
1.2.4 Solvency Margin
1.2.5 Compliance with Section 40C
1.3 Business Review and Summary of Operations
1.3.1 Reinsurance
1.3.2 Unisurge Initiative
1.3.2.1 Agency Vertical
1.3.2.2 Bancassurance
1.3.2.3 Motor Dealer
1.3.2.4 Large Corporate Broker Cells1.3.2.5 Small and Medium Enterprises initiatives
1.3.2.6 Service Hubs
1.3.2.7 Third Party Claims Hubs
1.3.3 Actuarial activities
1.3.4 Customer Care Services
1.3.5 Right to Information Act
1.3.6 Official Language Implementation
1.3.7 Corporate Communication
1.3.8 Information Technology
1.3.9 Human Resources Development and Personnel
1.3.9.1 Organisational Network
1.3.9.2 Human Capital Management
1.3.9.3 Performance Management System1.3.9.4 Break-up of number of employees
1.3.9.5 Recruitment
1.3.9.6 Training
1.3.9.7 Welfare of SC/ST/OBC/PwD/Ex-servicemen
1.3.9.8 Sports Activities
1.4 Measures taken to enhance credibility of internal controls and financial reporting
1.4.1 Internal Audit
1.4.2 Audit Compliance
1.4.3 Vigil Mechanism
1.4.3.1 Vigilance
1.4.3.2 Fraud Risk Management Policy and Whistle Blower Policy
1.4.4 Anti-money Laundering
1.4.5 Environment Relief Fund
1.4.6 New Products
1.4.7 Claims Management
1.4.7.1 Mega Lok Adalat
1.4.7.2 J & K Flood
1.4.7.3 HudHud cyclone claims
1.4.8 Foreign Operations
1.4.9 Enterprise Risk Management
2.
2.1 Economic Conditions, Insurance Market vis-a-vis Performance of United India
2.2 Operating Performance
REPORT OF THE BOARD OF DIRECTORS TO THE MEMBERS
Highlights and Department-wise performance
Management Discussion and Analysis
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2.2.1 Segmental Performance
2.2.2 Summary
2.2.3 Capital & Funds
2.2.4 Performance Review2.2.5 Key Accounting Ratios
2.2.6 Contribution to National Ex-chequer
2.3 Corporate Social Responsibility
2.3.1 Village Adoption, School Literacy Programme, Swachh Bharath Kosh:
2.3.2 Financial Inclusion
2.3.3 Micro Insurance
2.3.4 New Initiatives
2.3.5 Agriculture Insurance
2.3.6 Rural & Social Sector Insurance
2.3.7 Health Insurance Scheme for BPL Families
2.3.8 Rashtriya Swasthya Bima Yojana (RSBY)
2.3.9 Other Government Health Insurance Schemes
2.4 Donations
2.5 Recognition for the Company- Awards and Accolades
3.
3.1 Board of Directors and Key Managerial Personnel
3.2 Meeting Details
3.2.1 Board Meetings
3.2.2 Investment Committee
3.2.3 Audit Committee
3.2.4 Risk Management Committee
3.2.5 Policyholders’ Protection Committee
3.2.6 Corporate Social Responsibility Committee
3.2.7 Information Technology Committee
3.2.8 Remuneration Committee3.2.9 Property Review Committee
3.2.10 Human Resources Committee
3.3 Secretarial Audit
3.4 Extract of Annual Return
3.5 Conservation of Energy, Technology Absorption
3.6 Related Party Transactions
3.7 Information relating to employees
3.8 Statutory Auditors
3.9 Directors’ Responsibility Statement
3.10 Placing of Annual Report before The Parliament
3.11 Plans/Outlook of Industry and Company for 2015-16
3.12 Acknowledgements3.13 Profile of the Board of Directors
3.14 Certification for Compliance of the Corporate Governance Guidelines
3.15 Disclosure under Sexual Harassment of Women at the Workplace(Prevention, Prohibition and Redressal) Act, 2013
4.
4.1 Extract of Annual Return in Form–MGT 9
4.2 Secretarial Audit Report
4.3 Format for the Annual Report on CSR Activities
4.4 Performance in Health, Rural and Social lines in the past five years
Report on corporate governance
Annexures
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Performance Highlights for 2014-15
GROSS DIRECT
PREMIUM
CRORES
` 10691.73 NET EARNEDPREMIUM
CRORES
` 8816.23
PROFIT
BEFORE TAX
CRORES
` 319.24SOLVENCY
MARGIN
2.36
PROFIT
AFTER TAX
CRORES
` 300.57 NET WORTH
CRORES
` 5589.03
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12000
10000
8000
6000
4000
2000
02010-11
6376.66
8179.29
9266.04 9708.93
10691.73
2011-12 2012-13 2013-14 2014-15
`
in
Crores
YEAR
Premium Growth
`
inCrores
YEAR
Profit After Tax
`
inCrores
YEAR
Net Worth
YEAR
250
200
150
100
50
0
Number of Policies (No. in lakhs)
2010-11 2011-12 2013-14
176188
214
2012-13
204
600
500
400
300
200
100
0
2010-11 2011-12
130.55
386.79
2012-13 2013-14 2014-15
527.33 527.60
300.57
6000
5000
4000
3000
2000
1000
02010-11 2011-12 2012-13 2014-152013-14
42454542
4953
53615589
2014-15
204
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Year Statutory Audit CAG Comments Date of Board Date of AGMComments on the Annual Accounts Meeting
Particulars Current Year 2014-15 Previous Year 2013-14
( incrores)
2008-09 Nil Nil 30th April 2009 8th July 2009
2009-10 Nil Nil 30th April 2010 31st May 2010
2010-11 Nil Nil 28th April 2011 2nd June 2011
2011-12 Nil Nil 28th April 2012 31st May 2012
2012-13 Nil Nil 26th April 2013 24th May 2013
2013-14 Nil 23rd April 2014 13th June 2014
2014-15 Nil 15th May 2015 TO BE HELD
WearealsopleasedtoreportonbusinessperformanceandoperatingresultsoftheCompany. `
Nil
Nil
Gross Premium Income 10691.73 9708.93
Net Premium 9326.02 8291.39
Net Earned Premium 8816.23 7603.30
Claims Incurred 7443.03 6277.38
Commission 531.29 438.83
Operating Expenses 2648.57 2111.23
Other Income/(Expenses) -16.02 -109.98
Investment Income (Gross) 2141.92 1967.18
Provision for Taxation 18.67 105.46
Profit Before Tax 319.24 633.06
Profit After Tax 300.57 527.60
1.2) FinancialPerformance
REPORTOFTHEBOARDOFD
IRECTORS
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The Directors have pleasure in presenting the
Seventy-seventh Annual Report of the Companytogether with theAudited Statementof Accountsand
BalanceSheetfortheyearendedMarch31,2015.
We have great pleasure in informing you that your
company’s accounts has been certified by the
statutory auditors’ of the company without any
qualification in their audit report for the year 2014-15,
1.1) StatutoryAuditors’ Report
1. REPORT OF THE BOARD OF DIRECTORS TO THE MEMBERS
consecutively for the seventh time, confirming again
the strength of the quality of accounts. The financialresults were finalized and placed before the Board on
15thMay2015.
The Company’s performance in adoption of accounts
by the Board and the completion of Annual General
Meeting well in advance as given in the table below
proves your Company’s consistent and qualitative
submissionofaccounts.
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1.2.1)ShareCapital
Authorised Share Capital of the Company is
200 crores. The Paid Up Capital of the Company is150croresason31stMarch2015.
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1.2.2)Reserves
An amount of 227.39 crores was transferred to
General Reserves in the year 2014-15. The transferrepresents75.65%oftheprofitaftertax.
R
( in crores) `
2014-15 2013-14
2014-15 2013-14
Paid Up Capital 150.00 150.00
Reserves and Surplus 5439.03 5210.53
TheDirectorsrecommendadividendof41%onthepaid-upcapitalfortheyearended31stMarch2015.Totaloutgo
inthe form ofdividend,including taxes,willbe 73.17crores.
( incrores)
Required Solvency Margin under IRDAI Regulations 2373.50
Available Solvency Margin 5599.00
Thesolvencyratioason31-03-2015was2.36asagainst2.54ason31-03-2014.
Percentage of expenses prescribed under the Act 19.75% 19.70%
Company’s actual percentage of expenses 23.53% 20.53%
PercentageofexpensesincludingCommissionprescribedundertheAct 28.92% 28.78%
Company’sactualpercentageofexpenses includingCommission 30.88% 27.93%
TheabovepercentagesarecalculatedonGrossDirectPremium.
`
1.2.3) Dividend
1.2.4) SolvencyMargin
1.2.5) Compliance with Section 40C
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1.3) Business review and summary of operations
1.3.1) Reinsurance
TheJ&K floodsand Hudhudcyclone hadimpactedthe
Company’s gross incurred claims which effect on the
Balance sheet was absorbed by the Excess of Loss
covers taken. Due to these two major catastrophic
events, the cost of renewal of non-proportional
covershasgoneup.ThedeductibleinRiskXLhasgone
upfromINR20crorestoINR25crores.
The Company has successfully renewed all its treaties
with reinsurers who comply with the standards set by
IRDAI.
In 2015-16 theObligatory session to GICRe continues
tobeat5%withacapping.
1.3.2) UnisurgeInitiative
1.3.2.1) Agency Vertical:
The performance details of various business
verticals which were established under the
TransformationProjectUNISURGEare as under:
The Umex Agency vertical whichrepresents active
individual agents completed a premium of 5316
crores in 2014-15 with an accretion of 609croresand registering a growth rate of 13%. The number
of active agents as on 31-03-2015 is 74,183
as against last year strength of 66,488. Agents
portalwas a major success story in 2014-15. 8,301
Agents are issuing Motor policies online through
portal. 455.67 crores was booked on Agents’
portal in 2014-15 as against 256.43 crores in the
previous year. Total number of policies issued on
Agents’portalwas24.25lakhsasagainst15.15lakhs
in previousyear.
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1.3.2.2)Bancassurance:
1.3.2.3)Motor Dealer:
1.3.2.4)LargeCorporateBrokerCells:
1.3.2.5) Smalland MediumEnterprisesInitiatives
1.3.2.6)Service Hubs:
1.3.2.7) Third PartyClaims Hubs:
Bancassurance vertical premium in 2014-15 is
647.57 crores as against 695.02 crores of lastyear.
Thetie ups with theMotorVehicles manufacturers
and Dealers continue to perform well. The
premium from various Motor Dealer Offices and
Cells and OEM t ie-ups have brought in
387.49 crores as against last year’s 360.14
crores. Thepremiumincludes 154.56 crores from
OEM tie-ups with Toyota and 10.70 crores from
TATA Commercial vehicles. 1,184 Dealers areissuingMotorpoliciesonlinethroughportal.
The 8 Large Corporate & Broker Offices have
completed a premium of 1158 crores with an
accretionof 156croresat agrowthrateof 16%.
TheSMEinitiativehastakenoffwellincurrentyear.
The premium from this segment has reached372.10croresrecordingagrowthrateof80.11%.
We continue to monitor the service delivery
through Hubs. Our 26 Service Hubs have settled
55,129 claims (including 368 theft claims)
achieved a TAT of 30 days (intimation to
settlement)anddisposalRatioof92.98%
31 TP Hubs settled 19,353 claims in 2014-15 and
achieved a claim settlement ratio of 37% during
the year. 5,638 claims were settled through
conciliationbytheTPHub.
To revitalize the activities, the Company is
p la n ni ng t o g o f or a s ec on d w av e o f
transformation project. The Company is also
poised to open Company’s foreign operations thus
fulfillingthecorporate vision of theCompany.
R R
R R
R
R
R
R
R
1.3.3) Actuarial
1.3.4) CustomerCareServices
Activities
Actuarial Science deals with assessing risks in
Insurance and Finance and is fast attainingprominence in General Insurance business. Actuaries
assist Companies by providing suitable inputs to
improvetheir profitabilityand overall financial health.
The Corporate Actuarial Department is involved in
core Actuarial functions which includes estimation of
Incurred But Not Reported (IBNR) claims reserves,
preparation of the Financial Condition Report,
Economic Capital calculation and Asset Liability
Management, which are important tools to analyse
the Company’s bus iness performance and
sustainability. In addition, the department provides
pricingsupport to TechnicalDepartments.
The department is also responsible for co-ordination,
collection and providing information to top
management and external bodies like IRDAI, Ministry
and GI Council. Detailed analysis reports on business
performance, claims settlement and incurred losses
arefurnishedto various departments periodically.
Further, the department provides regular reports on
developments in Market and analysis of Industryperformance through periodicals like “Matrix” and
“Convergence”.
In today’s competitive market scenario, CustomerService delivery is oneof the importantdifferentiating
factors. Over the years the department’s role hasevolved from a transactional role of handling ofcustomer grievances into a transformational role ofidentifying customer expectations, analysing the
issues involved at various stages of insurancetransactions andenabling thehuman resources of theCompany in fulfilling them with continued trainingsupport.
In line with the IRDAI’s guidelines on GrievanceRedressal, the Company has a Board approvedCustomer Grievance Redressal Policy duly filed withIRDAI. TheOnline GrievanceRedressal Portal (UGMS)
is integrated to IRDAI’s Grievance ManagementSystemonrealtimebasis.
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2013-14 2013-14 2013-14 2013-14 2013-14
IRDAI 103 1282 1346 39 97
DPG/
Ministry 10 120 124 6 95
Direct by
UIIC 147 4793 4876 64 98
260 6195 6346 109 98
2014-15 2014-15 2014-15 2014-15 2014-15
39 1126 1150 15 98
6 103 103 6 95
64 4693 4723 34 99
Total 109 5922 5976 55 99
Data on Customer Grievances - 2014-15 2013-14Vs
ComplaintSource
GrievancesDisposed
DisposalRatio (%)
OpeningBalance
GrievancesRegistered
GrievancesPending
LOB-wisedistributionofGrievance:- LOB Grievances received
TOTAL 6031
FIRE & ENGG 244
MARINE 125
MOTOR 1760
HEALTH 3219
MISC. 683
FIRE & ENGG.
4.05%MARINE2.07%
TATAnalysisonGrievancesDisposal
During the year, the Company recorded all-time high disposal ratio of 99%. The Age-wise Analysis of Grievances
Disposalin 2014-15 vis-à-vis2013-14isgivenbelow:
4
1-15 days 3352 56 50
15-30 days 971 16 18
30 and above 1653 27 30
Earnest efforts are made towards speedy resolution of grievances so as to comply with IRDAI’s guidelines on
Grievance Redressal. The importance of adhering to IRDAI mandated TAT of acknowledging a grievance within
3 days and resolving the same within 15 days was stressed upon during the Annual Nodal Customer Care Officers
meetheldatVaranasion8-10-2014.
On a further analysis it is observed that as much as 73% of the complaints are resolved either fully or partially
in favour of the complainant which reveals the Company’s openness/willingness to review their decision upon
representationfromtheinsured/beneficiary.
TAT Duration Grievances Percentage of Percentage of
(No. of days) Disposed disposal 2014-15 disposal 2013-1
Total 5976 99 98
Average TAT 29 DAYS 37 DAYS
MISC.11.32%
HEALTH53.37%
MOTOR29.18%
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Data on ombudsman complaints 2014-15 2013-14Vs
Year OP BalanceComplaints Complaints Pending
Received Disposed as on 31/032014-15 735 1134 1469 400
2013-14 1039 1573 1877 735
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Various Customer Care Initiatives of the Company
in 2014-15
Sensitization of Frontline officers on “Achieving
ExcellenceinCustomerService”
ConsumerEducationthroughWeb:
RootcauseanalysisofGrievance
1.3.5)RighttoInformationAct
Training of Frontline officers on “Achieving Excellence
in Customer Service” was imparted to nominatedFrontline officers of 14 Regional offices across the
country. The training aimed at enlightening the
participants on better practices to be adopted while
dealing with the customers in their day-to-day
functions. A unified module was developed covering
important aspects of customer service delivery and
Regulatoryobligations.
A unique approach of spreading awareness to
insuring public about our products and processes wasinitiated during 2014-15. Key Information about retail
products, documentary requirements at every
stage of insurance transactions i.e., proposal, policy,
renewal, claims etc. arebeing displayed under the link
http://uiic.co.in/customercare/consumer-education.
The count of hits registered in the page indicates that
theinformation isbeingaccessed bynumber ofusers.
One of the important functions of the department is
analysingthe grievances registered in UGMSportal onquarterly basis to identify the predominant causes
which give rise to repetitive complaints, advice HO
Departments and the respective Regional office to
initiate suitable remedial measures so as to avoid
recurrenceofcomplaintsoutofsamecause.
Rightto Information department was formedat Head
office immediately after enactment of the Act
in 2005. TheRight to Information Act wasenacted to
promote openness, transparency and accountability
in the administration of every Public authority. In
order to provide speedy information, our Company
took a step further and formed a RTI department in
each Regional Office, nominating a CPIO at each R.O.
as well as LCBs. To make the entire mechanism work
smoothlyDivisionalManagers / Branch Managers andMicroIn-chargeswerenominatedasAPIOs.
We conducted eight workshops in various Regional
Centres viz. R.O. I Mumbai, R.O. II Mumbai, Patna,
DRO I, Chandigarh, Ludhiana, Bhubaneshwar and
Madurai with a view to sensitise the Divisional
in-charges / Department heads of the respective
RegionalOffices.
Besides conducting workshops, five Regions viz.
Ludhiana, Chandigarh, Pune, Patna and Vadodarawere visited to oversee RTI disposals and also to give
guidance for timely disposal of all applications/
appealsreceivedbytherespectiveR.Os.
Apart from sensitising /conducting Workshops, HO
RTITeam has also organisedone All India CPIO’s meet
at Varanasi and one All India Meet for Appellate
Authoritiesat Chennai.
To commemorate the tenth year of the enactment of
theRTIAct,RTIDaywascelebratedatH.OandatR.Os.
byconductinganessaycompetition.
The department has released two bulletins i.e.
Unisandesh. The first bulletin of this Financial year
was released in the month of July and the second
bulletin was released by Prof. Sridhar M Acharyulu,
Chief Information Commissioner, CIC during the All
India Appellate Authority’s Seminar held at Chennai.
The bulletin aims at creating awareness among
employees on RTI matters and also updating on the
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Applications/Appeals:
Opening Balance 45 14 6 7
Number of applications/appeals received 1861 206 399 73
Number of applications/appeals disposed 1854 210 372 77
Number pending 52 10 23 3
Disposal rate 97.27% 95.45% 94.32% 96.25%
For Company as a whole Received at Head Office alone
Application Appeals Application Appeals
1. 90% of the applications were replied without
taking any exemptions under Sec. 8(1) of the
RTIAct.
2. As per the provisions of the RTI Act, we have taken
steps for maximum dissemination of information
totheapplicants.
3. Ministry letters and applications transferred by
them and other Public Authorities were promptly
respondedto.
4. It is noteworthy that a few of the appeals were
dismissed in favour of our Company with the
CPIO’s intervention while presenting the case
during the hearings. All CIC orders were complied
withintheperiodspecifiedintheorder.
5. To commemorate the 10th year of the powerful
legislation of RTI Day was celebrated in H.O.
and R.Os. by conducting an essay competition.
Participants were felicitated by our CMD
on17-10-2014.
6. The TAT of all R.Os. are regularly monitored
throughtheonlineKRAregister.
ANNUAL REPORT 2014 - 2015
latest trends and importance of Act provisions.
8 special bulletins were also released in our
Company’s intranet to spread awareness about the
department’s activities.
Applications/appeals are to be disposed off within
thirty days from the date of receipt of the same as per
the statute. However, wherever possible they are
Performancefortheyear2014-15
b e i n g d i s p o se d e v e n f a s t e r . C I C o r d er s
are complied with as per the time schedule
indicated in the order. Details of applications
a n d a p pe a ls ( fo r c om pa n y a s a w ho l e)disposed in the financial year 2014-15 are as shown
below.
Details of applications and appeals (for company as a
whole and H.O. alone) disposed in the financial year
2014-15areasshownbelow.
As a proactive measure for reducing the number of
applications, a root cause analysis has been done to
initiate necessary remedial measures to reduce the
numberofRTIapplications.
United India is progressing well in implementation of
Official Language Policy as per the Annual
Programme on O.L. Implementation of Govt. of India.
Some of the noteworthy achievements in the period
under review in Official Language Implementation
include:
United India Insurance Co. Ltd. and Tamil Nadu Hindi
Sahitya Academy, jointly organized World Hindi Day
and The Third International Literature Conference and
Award function at Nalanda, Learning Centre on 10th
January 2015.
wasthe
Chief Guest. Sri Ish Kumar, General Manager,
Smt. P.Hemamal i ni , G eneral Manager and
1 )
Smt.Mridula Sinha, Hon’ble Governorof Goa
1.3.6) Official Language Implementation
WorldHindiDivas
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SriR. Hariharan, DGMof ourcompany sharedthe dais
with Governor of Goa and exchanged their views of
importance of Hindiand itspropagation.
honored Hindi Writers, Poets, Foreign Writers with
shield and certificates and Life Time Achievement
award was also given to the eminent personalities
who contributed for the development of Hindi
Languagethroughtheirworks.
Kanpur DO-II (Lucknow), Kannur DO (Kochi),
Amaravati DO (Nagpur), Bhilai DO (Raipur) and
Regional Offices of Bhopal, Kochi, Dehra Dun werehonoured by their respect ive TOLICs with
Commendation certificate and shield for the best
performance in official language implementation
duringtheyear.
(a) Five employees of Head
Office were nominated for
conducted by
TOLIC, Chennai on various dates and all the
nominatedemployeeswonprizes.
(b) Many employees of various offices won prizes
in the competitions conducted by local TOLICs
andaddedfeatherstoourcap.
Head Office
participated in Hindi Drama Competition
organised by TOLIC, Chennai and won prize
among 20 teams comprising of various CentralGovernment Departments/Offices and Public
SectorUndertaking.
a) The Third Sub-Committee of Committee of
Parliament on Official Language visited
on
9th February 2015 under the chairmanship of
M.P. to review the
Smt. Mridula Sinha, Hon’ble Governor of Goa
COMPETITIONS:
“Hindi Essay
Comp et it ion”, Hind i Not ing and Draft ing
Competition, Hindi Oratorical Competition andHindi Anthakshari Competition
Hindi Drama Competi tion :-
Ooty
Divisional Office under Coimbatore Region
Sri
Hukum Dev Narayan Yadav,
2) Accolades
3) Town O ff icial Lang uage Imp leme nt ation
Committee(TOLIC)Activities
4) ParliamentaryCommitteeon Official Language
p r o gr e s s m a d e i n O f f i c ia l l a n g u a ge
Implementation in our company. Sri Ish Kumar,
General Manager, Head Office and Officers of
Head Office and Coimbatore Regional Office andMinistry officials attended the meeting. The
Committee appreciated the efforts taken in our
company for the successful implementation of
Official Language.
b)
had discussion with
DGM, Regional Office, New Delhi – II on 9th
January 2015 at New Delhi and suggestions were
givenfortheprogressiveuseofHindi.
All India Hindi Officers’ Conference was organised on
22 and 23 January 2015 at Lucknow with an object to
review the progress made in Official Language and
apprise the various latest amendments made by
Ministry in Official Language Implementation . The
Conference was inaugurated by Sri Milind Kharat,
CMD. Sri.Ish Kumar, General Manager; Sri R. Hariharan,
DGM, Head Office, Sri.S.N. Saxena, CRM of Lucknow,Sri Rajiv Kumar, ED, HAL and Chairman of TOLIC,
Lucknowwerepresentintheconference.
CMD in his address listed the achievements of our
company in the f ield of Official Language
Implementation and insurance business. He added
that in the present environment Customer Care is the
foremost important tool of our industry and
necessary steps should be taken to fulfil the
expectations of a customer. Hindi personnels should
take interest in progressive use of Hindi and language
of thecustomer, as ourmain business is Insurance andcustomer service. He highlighted the suggestions
made by the Parliamentary Committee on Official
Language to make a good progress in Official
LanguageImplementation.
Regional Offices’ performance was reviewed and
Regional Offices who performed the best in Official
language Implementation were honoured with
Shield by Sri Milind Kharat, CMD. The First Prize was
bagged by Kochi, the Second Prize was awarded to
The Parliamentary Committee on Noting &
Drafting and Oral Evidence
5)Meetings/Conference&Seminars:
a) All India Hindi Officers’ Conference – Lucknow -
22and23January2015.
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New Delhi – II, Bhopal was honoured with the Third
Prize and the Special Prizes were bestowed to Jaipur
andNagpur Regionaloffices.
It was resolved to carry forward the implementation
of official language more effectively in the coming
years by creating awareness through Hindi
Workshops, Inspections, Seminars and many
programmes throughHindi.
organised a seminar on 6th July 2014 at
Learning Centre, Chennai and
organised a
Hindi Seminar on 12 December 2014 at Mangalore.Head Office was representedby Sri R. Hariharan, DGM
and Sri N. Gopi, Dy. Manager. In the said seminars
o f f i ce r s n o m i na t e d a s O f f i ci a l L a n g u a ge
Co-ordinators at Head Office and Divisional Offices
were given training on usage of UNICODE software,
expectations of Parliamentary Committees and
importance of compliance of Official Language
regulations as perMinistryguidelines.
Several insurance products were advertised in Hindi,
through Radio bits in various Radio channels as a part
ofRadioCampaign.
(a) Head Office organised a workshop
on 16th December 2014 at Learning Centre. The
object was to apprise the participants about their
role and responsibilities. The workshop was
inaugurated by Sri Ish Kumar, G.M. and
Sri R. Hariharan, D.G.M. addressed the gathering.Dr. D.N. Singh, Member Secretary, TOLIC, Chennai
deliveredalectureonTOLICactivities.
b) - Employees of Head Office,
weregiventrainingontheusageofHindiSoftware
UNICODEregularly.
All Regional Offices conducted Hindi workshops
and UNICODE workshops as per the action plan
issuedbyHeadOffice.
Head Office
Bangalore Regional
Office jointly with Hubli Regional Office
Head Office -
UNICODE Training
b) JointHindi Seminars atChennaiand Mangalore:
6) Advertisements in Hindi under special Radio
Campaign
7) Hindi Workshops andUnicodeTraining
c) was celebrated in
Head Office and in all offices of the company
duringthe month of September2014.Prizes were
awarded to the winners of the competitionsconducted on this occasion.Cultural programmes
wereapartofthecelebrations.
d) Head Office
released Hindi News Letter on the
occasionofHindiDay/WeekCelebrations.
Publication of Hindi House Magazine by Head Office
(two issues) and Regional Offices, inspection of
offices, supply of bilingual software ‘UNICODE’,training of employees and awarding incentives on
passing examinations werein accordance withAnnual
Programme.
Corporate Communications at HeadOffice carries out
all communication related activities of our Company
in tune with the vision of our Company tobe the most
preferred insurer in India and a trusted brand admired
by all stakeholders. The objective is to build and
reinforcethe brand image oftheCompanyby carrying
out publicity in a fair and ethical way. The departmentdisplayed an energetic and aggressive disposition
towards publicity activities with the object of
continued visibility and creation of a strong brand
image for United India among the public. The
activities were focused mainly to create awareness of
ourpolicieswhereourpresenceislowandeducatethe
masses the need to avail the insurance products as a
riskmitigationmeasure.
The task of building a relevant brand that customer
could trust was the underlying tone of the publicity
plan for the year by ensuring uniformity of contentwhilepermitting diversified approachessuited to local
environment and to achieve media mix to maximise
valueformoney.
The Company’s advertising plan encompassed
various media including Press, Television, Radio,
Outdoor Hoardings etc. Outdoor media continued
to be the dominant channel for our expression. The
range included Hoardings, Neon signs, Bus shelters,
Full Bus-bodypaintings,Trolleysat Airportsetc.
HINDI DAY /WEEK/ MONTH
Release of Hindi News Letter:
UNIRAJBASHA
Complianceof OfficialLanguageRegulations
1.3.7) CorporateCommunication
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The department was also involved in the designing
and printing of newsletter of various departments at
Head Office like Unisurge, Matrix, Unicustomer Care,
Project Cell, RTI etc., and in the preparation of agencykitsfor Umex agency department. Furtherthe printing
and designing of Calendars, Diaries were carried out
in addition to the printing of Policy Pamphlets and
AnnualReportfortheyear2014-15.
Euphoria associated with the FIFA World Cup 2014
and the Cricket World Cup 2015 wereutilised by us by
carrying out advertisement in leading dailies across
the length and breadth of our country to derive
publicity mileage for our Company. Also topical
advertisement congratulating ISRO scientist on theirsuccessful launch of the Mangalyan into Mars was
carriedout.
Judicious mix of popular and niche channels were
considered to advertise various products to reach all
types o f v i ew ers ac ro ss the c ountry. The
Bancassurance tie-up co-branded campaign was also
carriedoutinFMstationsacrossthecountry.
Our Company continued to be the sponsor for the
tenth year in succession of the Chennai Open Aircel
Tennis tournament, the only International ATP TennisTournamentinSouthAsiaastheplatinumsponsor.
United India is riding the crest of Information
Technology-driven growth and IT has contributed its
mite to make growth possible in a highly competitive
and discount driven market. Efforts include increased
use of technology, focused training, streamlining of
processes and new initiatives through responsible
projectplanning. ITprocesseshavebeenstreamlined,
and we have shown that we can improve insurance
services and bring down turn-around time to achieve
greater Customer Satisfaction. With a slew of online
services, focus is kept on customer self-service with
ease of operation over the internet and empowering
the intermediaries to offer best customer service in
addition to being point of sale. We are building IT
Infrastructure to support the planned growth and to
efficiently manage our resources, and deliver services
effectively.
1.3.8) InformationTechnology
CORE INSURANCE SOLUTION, the centralized
software solution comprising Insurance application,
and SAP FICO and HCM modules was implemented
in nearly 80% of the offices having connectivity andit is planned to complete implementation in the
remaining offices mainly micro offices, in the first
quarter 2015-16. All 12 Lines of Businesses (LOBs)
havegotrolledoutinCORESOLUTION. Intermediary
portals are working in CORE platform and have
products of Motor, Health, PA, Overseas Mediclaim,
Fire and Burglary. 1,184 Dealers and 8,301 Agents are
issuing policies online 24 X 7 through the portals and
the premium booked by portals amounted to 10% of
Motor premium booked in the offices. Web services
integration has been successfully done between
UIIC’S CORE SOLUTION with Yamaha and Chevrolet
OEMs for proposal validations and policy issuance
online from dealer network. Claims processing and
settlement and reports in CORE are enabled and
working in 26 OD Claims Hubs and 31 Third Party (TP)
Claims Hubs.
We h av e l e ve r ag e d I T t o s t re n gt h en o u r
Bancassurance tie-ups through online bancassurance
portals for Banks such as Indian Bank and Bank of
M a h a r a s h t ra f o r c u s t o m i ze d c o - b r a n d ed
Bancassurance Health and Personal Accident
Insurance products. Online issue of Fire, Burglary,Unihomecare, Health and Personal Accident Policies
for Canara Bank & Indian Bank under Bancassurance
has beenfurtherstrengthened.
TP (Third Party) Claims portal was launched for M/s.
Tata & Toyota OEM tie-ups. Through this, UIIC nodal
offices can register and process the TP claims on
policies issued under the tie-up and the data can be
directly taken into the OEM database for further
processing.
Addressing the growing trend of online buying &renewal of policies, a plethora of products such as
Motor, Health, PA, OMP, Householder, Shopkeeper
has been offered in the Customer Portal with a link
from the Company Website. Product information
updates to Customers is an ongoing process through
FAQs, Dos & Donts, Policy Terms & Conditions
published on the Website. SMS and E-mail alerts for
renewalsand policyissuanceand claimsapprovalsare
sent to Customers and Intermediaries. We have
designed and implemented new theme forCompany
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website with a combination of attractive visual
presentation along with excellent customer service
features that will boost our online presence and bring
on board more online customers. With ease ofnavigation and faster page loading customers will
have delightful experience browsing the newly
themedwebsite.
Our Human Capital Management (HCM) system has
been further consolidated and with majority of the
modules rolled out most of the HR processes have
been automated which is a commendable
achievement.
W e h a v e u p g r ad e d O p e r at i n g O f f i ce s
MPLS bandwi dth and i nternet bandw i dthfor the online portals which has enhanced the
access to business application to a great extent.
A robust e-mail-solution with rich features from
IBM has been implemented ensuring hassle-free
secured e-mail communication in the Company.
The Centralized Desktop Management Solution
(CDMS) which is in the implementation phase will
go a long way in providing the desired information
security cover for all the computing assets in the
Company.
Ason31-03-2015,theCompanyhas1,992offices:
Regional Offices 28
Large Corporate & Brokers’ Cell 8
Divisional Offices 406
Branch Offices 666
Micro Offices 884
includinga virtual office.
The SAP-HCM (System Application and Products –
HumanCapitalManagement)isunderuseinalloffices
pan-Indiabasedcoveringthefollowing:
*
Total 1,992
*
1.3.9) H um an R es ou rc es D ev el op me nt a ndPersonnel
1.3.9.1) OrganizationalNetwork:
1.3.9.2) HumanCapitalManagement :
Personnel Administration (PA), Organization
Management (OM), Deputation Module, Class 1
Promotion Policy (C1PP), Training and Event
Management Module, Reservation and RosterManagement. Disciplinary Module has been signed
off.
In addition, Online Property Returns on SAP HCM is
being used by all the Class I Officers to submit their
PropertyReturns forthe past three years.As in thelast
year, the Online APAR (Annual Performance Appraisal
Report) for all the Class I Officers is continued to be
used and all officers’ performance appraisals aredone
throughonline.
Continuing thePMSprocess forthe year 2014-15, Key
Result Area (KRA) based Targets were finalized for all
the Operating Groups and individual Executives. The
sixth year of implementation of the PMS process in
the Company witnessed an increased awareness
about the Profit Linked Lumpsum Incentive (PLLI)
Scheme, among the employees, which resulted in an
enhanced level of motivation and productivity which
to a large extent contributed to the all–round good
performanceoftheCompany.
The KRA performance appraisal process for the year
2014-15 was completed forROs & LCBs. For the other
groups andindividualExecutives it is underprocess.
Individual KRA Targets for Managers (Scale IV) and
Chief Managers (Scale V) would be integrated into the
performance appraisal process relevant to them for
theyear2014-15,likelastyear.
It is expected that the KRAs and the PLI Scheme
would continue to encourage a healthy competition
among the offices in the Company to improve
productivity and to facilitate the company to achieveitsobjectivesyearonyear.
During the year 2014-15 software for PMS
Department has been developed and it is in the final
processoftesting.
The Company has 16,366 employees with the
followingclass-wisebreakup:
1.3.9.3) Performance Management System (PMS) :
1.3.9.4) Break-upof Numberof Employees:
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Details ofTrainingProgrammesattendedbyour employeesduring theyear2014-15is givenbelow:
Total 1,003 13,692
Name of Training Centre No. of Programmes Participant Employees
Workshops and Training by HO Departments 20 635
Corporate Learning Centre, HO 49 1,685
Regional Training Centres 778 10,323
National Insurance Academy 130 993
Other External Institutes 26 56
ANNUAL REPORT 2014 - 2015
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Class No. of Employees
Total 16,366
Class I 6,776
Class II Marketing - 846Administration - 336 1,182
Class III 6,471
Class IV 1,937
During the year 2014-15, 269 officers have beenrecruited into theScale I cadre.Besides,9 officers withPGDM qualification have been recruited fromNational InsuranceAcademy (NIA), Pune campus. Therecruitmentof young talented officers in Scale I cadreis continued in the current year also to supplementexisting experienced manpower to meet therequirements.
As in the last year, company has taken up therecruitment of Assistants in the current year also.Accordingly, process for the recruitment of Assistantstofillup684postshasbeeninitiated.
In order to equip our workforce to face the challengescoming up in the domestic and global environmenttraining at all levels is being conducted by varioust rai n ing c entres to i mprove pers o nal andorganisational effectiveness for higher productivity.All India Personnel Officers’ Meet was organized atLonawala, Pune on 11-12-2014 and 12-12-2014. TheRegional training teams, Learning Centre and theCorporate Training Department met in All IndiaTrainers’ Meet conducted at Mysore on 8th and 9th of
January 2015. Best RTC Awards which is unique in ourCompany for the past 5 years were presented to the
1.3.9.5) Recruitment:
1.3.9.6) Training:
winning RO teams. Annual Report on Training ispublishedby Corporate Training Department, HO andLearningCentreeveryyear.
Our Corporate Training Centre ‘Nalanda’ at Chennaiand Twenty-six Regional Training Centres attached toour Regional Offices publish and circulate theirTraining Calendars well in advance and conducttrainings as per requirement of the Training Needs ofthe Company. Training Advisory Group with fourGeneral Managers and three Deputy GeneralManagers conducted two meetings with theCorporate Training team and Learning Centre to guideand advise on training related issues. Besides, sixty-four Agents’ Training Centres are also operatingthroughout thecountry.
National Insurance Academy at Pune co-promoted by the Company along with its PublicSector Counterparts and LIC, imparts Insurancetraining on specialized insurance topics to ourofficers. The academy also offers researchfacilitiesoninsurancerelatedsubjects.
Officers have been trained at various ExternalTraining Institutions like College of Insurance,Institute of Public Enterprises, ASSOCHAM, MDI,Industrial Management Academy and at variousIndian Institutes of Management.
Induction Training was conducted at CorporateLearning Centre for 232 newly recruitedAdministrative Officers in 4 batches. A training onCareer Planning in two batches is conducted foryoung officers every year. A special managementtraining programme for selected 89 Scale IVofficers, ‘United Leadership EnhancementProgramme’ was conducted at NIA in threebatches.
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Apart from the above, Regional Offices conducted
customer seminars wherein number of participants
were 12,953.
Thetotal numberof Agentstrainedin various Regional
Training Centres is 10,300 and 187 brokers were
trainedatLearningCentrein8programmes.
993 officers trained at NIA is the highest ever in the
company in a year. All promotee Scale V Officers of
the year attended ‘Top Middle Level Management
Training’ held at LC and all Scale IV promotees of the
year were imparted the training, ‘Overcoming
Challenges’. Our CMD was awarded ‘CEO with HR
Orientation’ and GM (HR) as one of 40 most talented
HR Leaders at Asia Pacific HRM Congress held atBangalore.
The Company complies with the guidelines of
Government on extending reservation of posts,
relaxations of age in recruitment and reservation of
posts in promotion for SC/ST. The Company also
adheres to the guidelines issued by the Government
on reservation for OBC categories in recruitment
as well as those governing personnel, concessionsrelated to Person with Disabilities. Incentives and
financial support are being extended from Dr.
Ambedkar Welfare Trust to the SC/ST and OBC
employees.
The Company conducted a Workshop for Liaison
Officers on Reservation Policy on 7-11-2014 and
8-11-2014 at Udaipur. Ms. Anuradha Godkhande,
Assistant Director, National Commission for
Scheduled Castes, Ahmedabad has given an
elaborate lecture in regard to the Reservation Policy.
For the first time, the office-bearers of SC/ST and
OBC Welfare Groups from all ROs have been given
training on Reservationpolicy and implementation of
various provisions and guidelinesconnected thereto.
Study tourof Parliamentary Committeeon Welfareof
SC/ST employees, visited Chennai met our CMD
along with our Senior Executives on 20-10-2014,
discussed various matters relating to SC/ST
employees.
1.3.9.7) W e l f a r e o f S C / S T/ O B C / P w D /
Ex-servicemen
Out of 1,685 officers who were trained at Learning
Centre, 714 officers were from SC/ST category.
Similarly, outof 993 Officers trained at NIA, Pune, the
number of SC/ST officers were 385. Further
3,333 SC/ST employees were trained at Regional
Training Centres and thereby adequate participation
of SC/STemployees wereensured.
Adequate representation is also being given in the
allotment of Staff Quarters as per reservation
guidelines.
It is a well known maxim that ‘Health is wealth’ and
Sport is considered to be a preserver of health. It issaid that “a healthy mind resides in a healthy body”.
Sports is popular among all classes of people; the
reason is that sports influence a man physically and
mentally as well as morally. Playing games andsports
has important advantages in a way that it socializes
our lives. The popular perception is that the
intelligence and skill can function at the peak of their
capacity only when the body is healthy and strong.
Sports facilitates the soothing of the mind and is
nature’sstress busters.
Based on this vision, the Central Sports Committee
has committed itself to promote sports activities
amongst the employees so as to facilitate the
participation of theemployeesin various sport events
according to their interests and to channelize their
mental and physical energy in a more positive
manner.
Various events are conducted regularly on an
All India basis as they instill in the player a spirit
of self-confidence, self-reliance, discipline, justice,
f ai r p la y a nd s en se o f b el on gi ng t o t heCompany. During the financial year 2014-15, the
7th All India Carrom Tournament was successfully
conductedat Visakhapatnam. The Regionaland Zonal
selections were initiated for the All India Shuttle
Tournament.
Employees were also nominated to various outside
to urnaments i nc lud i ng the Nat io nal leve l
tournaments apartfromparticipatingin Regionallevel
tournaments.
1.3.9.8)Sports Activities
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1.4) Measures taken to enhance credibil ity of
internalcontrolsandfinancialreporting
1.4.1)InternalAudit
I n te r n al A u di t & I n sp e c ti o n D e pa r t me n t ,
as management function, contributes towards
good corporate governance of the Company by
timely reporting to top Management as and when
deviations are observed and ensure that the
organization functions as per norms and various
existing regulations. By reporting in an impartial
manner, the department enables the Company to
achieve its corporate vision. As an extended arm of
Corporate Management, trained team of auditors not
only report the deviations found, but they also
educate the operating offices on the various
procedures to be strictly adhered to so that effective
transparency is brought in theoperations and thereby
contributes its share in the performance of the
Company.
Working closely with Regional Management, several
pending audit queries are resolved by having
structured meetings with Regional Chiefs by the IAI
Cells bi-monthly. At HO level, all major observations
are presented to top Management based on which
corrective measures have been initiated and reported
to Audit Committee. Frequent interactions with
various departments in HO, especially Vigilance
D e pa r t me n t h a s b r ou g ht a b o ut w e l co m e
improvement in the working of the Company. By
conducting RACC meetings in all the Regional Offices
where all Divisional In-charges are present, culture of
audit compliance is thrust upon for the health of the
Company by highlighting the required improvements
at various levels so as to bring an effective InternalControlbesidesresolvingissuestogether.
To t al r e c ov e ry o f 1 , 22 , 94 , 50 7/ - f r o m
various segments such as Clients, Employees
and Intermediaries has been effected during
FY 2014-15, showing the effectiveness of the Internal
Audit Department. All Regional Offices, LCBs,
Hubs, DOs, BOs and MOs have been audited besides
9SpecialAuditsduringthefinancialyear.
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1.4.2)AuditCompliance
1.4.3) VigilMechanism
1.4.3.1) Vigilance
The Audit Compliance Department ensures timely
compliance of queries raised by CAG Auditors andInternal Auditors of the Company. Regional
Compliance Officers identified in each of the ROs
co-ordinateeffectively with the Internal AuditCells to
make certain that the audit reports are responded to
in time by the operating offices thereby ensuring
fastercomplianceof auditqueries.
Regular interactions direct and through video
conferencing with the Regional Heads, and Regional
Audit Compliance Officers have helped improve
compliancelevels.
Committees consisting of GMs and DGMs have beenconstituted with delegated authority to consider
cases for waiver of Inspection, Personal and Agency
Commission as perdirections of theAuditCommittee
of theBoard. Queries relating to reports issuedpriorto
2006-07, identifiedby the RegionalOffices arebeing
placed before the Committees for their review after
ensuring that these amounts cannot be recovered.
During the year, the Committees considered various
queries for waiver based on the recommendations of
theROs.
The department also has regular interactions with theCAG Auditors. An Audit Committee meeting was held
with the CAG Auditors in February 2015 during which
33 queries were dropped outof thetotal35 discussed.
The department also facilitates submission of Action
Taken Notes in respect of printed paras based on
which the Office of the C&AG has considered 5 paras
asdroppedduring2014-15.
The department also places Action Taken Reports
before the Audit Sub-Committee to report the
progressof Audit Compliance.
Vigilance is part of the overall risk management
mechanism of the company and vigilance
activity in financial institutionsis an integral part
of the managerial function. The vigilance
function should not be seen as an impeding
factor in the decision making process in any
institution. It should be viewed as an internal
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HOwillbetheuseranditisproposedtoextendittoall
vigilanceofficers across thecountry in thesubsequent
phase.
There has been extensive activity by HO Vigilance
Department as well as by Vigilance Officers in ROs
to strengthen vigilance administration. The following
initiatives havebeen taken:
For the first time, it has been decided that team
from HO, Vigilance Department will inspect ROs
and LCBs during the year. The objective was to
not only look at deficiencies in the working of
operational offices but also enable the vigilance
team to have a first-hand account of thefunctioning of these offices. While highlighting
preventive measures, the inspections enabled
Vigilance Department to point out activities that
could lead to vigilance angle while also giving
feedback to corporate management on the
necessity of making interventions through timely
guidelines and better oversight on the lower tier
offices. In all, 12 offices were inspected by the
HO Vigilance Department during the year and
important findings were shared with top
management.
Chief Vigilance Officer (CVO) attended meeting
of Regional-in-charges held at Ooty in April 2014
and in Kolkata in November 2014 and gave a
presentation about Preventive Vigilance Aspects.
Presentations were made in the Corporate
Learning Centre on Vigilance awareness to three
different groups. CVO participated in the
deliberations of the Vigilance Study Circle,
Hyderabadon 07-07-2014.
Presentation was jointly made by CVO with CMD
in the Annual Sectoral Review Meeting held on
24-7-2014at CVC’s Office.
A fresh pool of 31 Officers has been identified as
Inquiry Officer / Presenting Officer (IO/PO) to
whom training was given on 2-3-2015 and
3-3-2015 at IO/PO Training at Learning Centre,
Chennai. On 3-3-2015, CVO had a open house
sessionwiththem.
Five structured meetings were held with CMD
duringtheyear.
VigilanceAdministration
ANNUAL REPORT 2014 - 2015
litmus test to identify the bona fide decisions
taken in the institution, irrespective of the fact
whether the decision taken has resulted in loss
to the institution or not. Therefore, VigilanceAdministration in the Company is vital for
“Promoting Good Governance”. The Vigilance
departmenthasbeenstrivingto:
a) Spreadawareness amongall stakeholders
b)Encouragegoodpractices
c) Build uppreventive vigilancemeasures.
Vigilance Awareness Week was conducted from
27-10-2014 to 01-11-2014 all over India and the
Themeof this year was‘COMBATING CORRUPTION–TECHNOLOGY AS AN ENABLER’. Inaugural function
was held at Head Office on 27-10-2014. CMD
administered the pledge to all the employees on that
day. Posters and Banners were widely displayed
duringtheperiod.
Vigilance department compiled a booklet ‘GOOD
PRACTICES’ which comprised of certain healthy
practices to be adopted by all Operating Offices and
c o p ie s w e r e d i s t r ib u t e d t o a l l R e gi o n a l
Offices/Operating Offices in the country.The booklet
was printed in English and Hindi and the offices werealso advised to get it translated into vernacular
languageaspertherequirement.
Various activities like Elocution / Essay Writing
Competition for the students of Schools were
conducted across the country by HO Vigilance
DepartmentatChennaiduringtheweek.Essaywriting
competition for Head Office employees was also
conducted on 30-10-2014 and prizes for the same
weredistributed.
Mode of video conferencing was effectively used to
interactwithVigilanceOfficers across the country and
review progress in Key Result Areas. To bring in better
control over the activities as well as for robust record
keeping including generation of MIS, efforts were put
in with the co-ordination of IT department to develop
a SAP based Vigilance Portal. The testing of the portal
isunder progressand the stage isset for rolling out the
portal. In thefirstphase,VigilanceDepartment,
VigilanceAwareness
Leveraging IT
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Training
1.4.3.2) Fraud Risk Management Policy and Whistle
BlowerPolicy:
1.4.4) AntiMoneyLaundering
Compliance
One of the Officer at HO, Vigilance Department
attended Seminar organized by Institute of PublicEnterprises, Hyderabad in June 2014. All the Vigilance
Officers and Desk Officers at HO, Vigilance
Department were subject to a 3-day training session
from 12-8-2014 to 14-8-2014 on Conduct of
Inquiries, Investigation Techniques, Key Result Areas
etc. at Kochi. CVO attended a Training session
conducted by IMA, New Delhi from 25-8-2014 to
26-8-2014 on Containing frauds, Malpractices,
Deficit in Governance as well as a training session
conducted by CVC for CVOs at New Delhi from 10th
to13thFebruary2015.
One Officer from HO-Administration Department
and one Officer from HO-IT department were
nominated for Training conducted by Transparency
International for a session on Public Procurement
ProcessduringthemonthofDecember,2014.
The Company has in place a Fraud Risk
Management Policy and a Whistle Blower Policy,
duly approved by Risk Management Committeeand Board. Both the policies are posted in the
Company'sintranet and website.
A Fraud Risk Management Committee (FRMC) is
constituted and a Nodal Officer is nominated, for
implementation of Fraud Risk Management
PolicyandWhistleBlowerPolicy.
The Prevention of Money-Laundering Act (PMLA),
2002, is implemented in our company since it
has been made applicable to Insurance Companies.IRDAI have been issuing amendments through
circulars from time to time which have been regularly
adopted by the Board of the Company and the same
have been circulated to our Regional Offices for strict
compliance.
Anti Money Laundering is headed by the Principal
Compliance Officer at Corporate Office and Nodal
Officer at the Regional Offices. The Principal
Compliance Officer would ensure that the Board
approved AML program is being implemented
effectively, including monitoring compliance by thecompany’s insurance agents with their obligations
under theprogram;thecompliance of AMLguidelines
atoperatingoffices is monitored closely.
A session on Anti Money Laundering is included in all
the training programmes organised in our Corporate
Learning Centre and in all the Regional Training
Centres to create awareness among employees,
agents,etc.abouttheprogramme.
For the sake of ready reference and to sensitize all
concerned, Company’s AML policy has been posted
in ourofficialWebsite.
It is essential to determine the true identity of all
customers through “ Know Your Customer” (KYC)
norms, at the settlement stage where claim payout /
premium refund crosses the threshold of One lakh
rupees per claim / premium refund, considering the
potential threat of the usage of the financial services
bymoneylaunderers.
In the event of any suspicious transactions (including
suspicious cash transactions) it is essential to report to
Financial Intelligence Unit-India (FIU-IND) set up by
Government of India. No suspicious transaction is
reported in ourcompany sincethe implementation of
theprogramme.
Insurance companies shall retain the records of thosecontracts, which have been settled by claim /
surrender or cancellation/records of investigations,
customer account files and business correspondence
foraperiodoffiveyears.
The Company has been appointed as the Fund
Manager under Clause 4 of Environment Relief Fund
Scheme 2008 as per Notification of Ministry of
Creationofawareness
“KnowYourCustomer”(KYC)
Suspicioustransactions
RecordKeeping
1.4.5) EnvironmentRelief Fund
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E n v ir o n me n t a n d F or e s ts G S R 7 6 8 (E )
dt.4th November 2008, constituted under
Sec.7A of the Public Liability Insurance Act 1991.
The Company has been authorized to receivecontribution from all General Insurance Companies
and keep invested the same in Fixed Deposits
as prescribed in the Scheme. During the year
2014-15, an amount of 9.30 crores was received
towards contribution from General Insurers and the
same has been credited to the Fund. The total
amount lying in Fixed Deposits as on 31-03-2015 is
568.49crores.
The company has introduced the following new
productsduringtheyear2014-15:
This add on cover is applicable to all classes of
vehicle upto 3 years of age from the date of
original invoice except Class E,F,G of Indian
Motor Tariff 2002. Endorsement UIIC – 9 is
attached to the Standard Motor Package Policy,
if this add on cover is provided on payment of
additional premium.
The c o mpany launc hed tw o vari ants o fLong Term Liability Policy for Two-Wheelers, one
for two years duration and another for three yearsduration.
The company has launched a revised version of the“Nil depreciation Add on cover without add on excesscover” under Motor Own Damage Policy in tune withthe market requirement. This add on cover provides
cover to all classes of vehicles except vehiclesclassified under Section E, F & G of IMT 2002. Thecover is on indemnity basis but deduction fordepreciation is being waived on parts for partial loss
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1.4.6) NewProducts
1. New Add on cover “Return to Invoice” under
StandardMotorPackagePolicy
2. Long TermLiability Policy forTwo-Wheelers
3. Revised Nil Depreciation Add on cover without
addonexcessunderMotorOwnDamagePolicy
claims (Total loss and Constructive Total Loss will besettledonthebasisofIDV).
Theclaimsettlement ratio forsuitandnon-suitclaimsfor the year 2014-15 stands at 37% and 91%respectively. The Company’s initiativeby introduction
of Service hubs and TP hubs have contributed forfocused and quick claim settlements. The focus hasbeen to improve customer service in the competitiveenvironmentinwhichweoperatetoday.
On thebasis of thedirections from theChief Justice of
India and Patron in Chief, National Legal Services
Authority and Ministry of Finance, the Company
participated in Mega Lok Adalat convened during the
year toensure speedysettlementofMotorThird Party
claims. A total of 13263 cases with a total amount of
242 crores were settled through compromise
settlement, comprising of 10343 cases relating to
death, 2839 cases relating to injury and 81 Third Party
PropertyDamage cases.
The Company settled 3828 out of 3866 claims
relating to J&K floods, achieving a settlement ratio of
99%.
The Company settled 282 claims out of 287 claims
relating to HudHud cyclone, achieving a claim
settlementratioof94%.
Underwriting operations at Hong Kong ceased with
effect from 01-04-2012 and New India Assurance
Company Limited, Hong Kong looks after theRun-off
portfolio since then. As on 31-03-2015, 3 claims were
stilloutstanding.
1.4.7) Claims Management
1.4.7.1) Mega LokAdalat:
1.4.7.2) J&Kfloodlosses :
1.4.7.3) HudHudCycloneclaims:
1.4.8) ForeignOperations
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( in crores)
0 0 0 0 0 0
Incurred Claims
Details
Fire Miscellaneous Total
Current
Year
A
Previous Current Previous Current Previous
Year Year Year Year Year
Net Premium
0 0 0.0992 0.2191 0.0992 0.2191
Expenses of Management 0.2753 0.3043
Other Income & Outgo 0 0
Underwriting Profit / Loss 0.3745 0.2920
Investment Income 0.2363 0.2548
Net Profit / Loss -0.1382 0.3414
Details of foreign exchange earnings and outgo for the year ended 31-03-2015:
Foreign Exchange earnings 222
Foreign Exchangeoutgo
.36 crores
462.01 crores
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3 4
Statement of run-off operations in Hong Kong Agency for the year ended 31-03-2015 :
1.4.9)EnterpriseRiskManagement
Enterprise Risk Management helps company to
identify its risks and the interaction between risks
within the enterprise and take initiatives to safeguard
theupsideinordertoprotectstakeholders’value.
The Company
constituted Risk Management Committee of the
Board, nominated a Chief Risk Officer to drive the
initiative and formed ERM department. TheCommittee met four times during the year and
deliberated on various issues relating to risk
management.
The Company appointed a
Consultant, along with other two GIPSA Companies
(National and Oriental), to prepare the ERM
Framework for the Company. This would encompass
preparing an ERM Policy of the Company, identifying,
assessing and classifying the risks, preparing the risk
Risk Management Committee:
ERM Consultant:
mitigation plans, Risk Appetite statement for the
Company and assist in finalizing a risk management
software.
The ERM department identified the
followingtypesofrisksintheCompany:
UnderwritingRisk
ReservingRisk
RegulatoryRisk
Market Risk
LiquidityRisk
Credit Risks
StrategicRisk
OperationalRisk
Types of Risks:
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Technology Risk
PeopleRisk
FraudRisk
The ERM department has taken the
followinginitiativesduringtheyear:
Promotion & Sensitization of risk culture across
theorganization
Shared the updated internal operat ing
procedureswithoperatingoffices
Implementation of Fraud Risk Management &
WhistleBlower Policies
ERM initiatives:
Developed manual redflags for fraud detection &
prevention in claims and shared with domain
departments
Conducted periodical meetings of Management
Committee on ERM and Fraud Risk Management
Committee
Provided ERM Advisories as part of r isk
communicationexercise
Prepared and shared Risk dash boards for major
operatingdepartments
Reported to Risk Management Committee of theBoardonvariousERMactivities
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2. MANAGEMENT DISCUSSION
AND ANALYSIS
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2.1) Ec ono mi c c ond it ion s, In sur an ce Ma rket
vis-à-visPerformanceofUnitedIndia
The non-life insurance industry recorded a growth of
10.80% in 2014-15. Subdued new premium growth
due to poor auto sales and lack of new projects has
dented the General Insurance Industry business
expansion in financial year 2014-15. Insurance
penetration and density are on the decline, premium
growth is still muted and claims are on the rise. While
every industry takes its own time to reach to its
pinnacle, lack of awareness and complexity of
products are providing major hindrances for the
insurancesector.
The Government of India has taken a number of
initiatives to boost the insurance industry. Some of
themareasfollows:
Amendment in Insurance Act, permitting 49 per
cent composite foreign equity investment (FDI)
in insurance companies will attract many foreign
giants’ insurersand Re-insurers.
A broad agreement has also been achieved with
the states on most of the issues concerning the
implementation of the single goods and services
tax (GST), which is scheduledto be rolledoutfrom
April1,2016.
With the Government committed to spend
trillions of Rupees in the infrastructure sector,
transformation of Railways, Power Sector, Mega
projects, Coal and in transport, non-life insurance
sectorisboundtowitnessrapidgrowth.
Higher growth trajectory in state government
health schemes will also provide ample
opportunitiesforpremiumgrowth.
The Government of India plans to launch a new
insurance scheme to protect farmers and their
incomesagainstproductionandpricerisks.
Under the Pradhan Mantri Jan Dhan Yojana, it has
been decided that even thoseaccounts which had
been opened prior to August 28, 2014 and have
zero balance will get 100,000 (US$ 1,612.55)
insurancecover.
Ambitious implementation of Pradhan Mantri
SurakshaBimaYojana (PMSBY).
Special Drive launched by IRDAI for bringing
un-insuredvehicles specially two-wheelers under
insurancecoverage.
The company grew at a rate of 10.12% during the year
completing 10692 Crores with a market share of
13.24% out of a total premium of 80696 Crores
accounted by the general insurance industry.
The company registered a PAT of 301 Crores.
The market value of investment went up to
25385Crores andnet worthto 5589 Crores.
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Class-wise Performance Summary
( in crores)A
Year Fire Marine Misc. Total
In India
Outside India
Total
In India
Outside India
Total
In India
Outside India
Total
Gross Direct Premium
Percentage Growth
0.00% 0.00% 0.00% 0.00%
Reinsurance Premium Accepted
Reinsurance Premium Ceded
2014-15 1251.49 526.73 8913.51 10691.73
5.19% -10.31% 12.38% 10.12%
2013-14 1189.74 587.28 7931.92 9708.93
6.15% -2.36% 5.15% 4.78%
2014-15 0.00 0.00 0.00 0.00
0.00% 0.00% 0.00% 0.00%
2013-14 0.00 0.00 0.00 0.00
2014-15 1251.49 526.73 8913.51 10691.73
5.19% -